27/08/2001

Further jobs cuts for electronic sector as axe falls at Toshiba

Following the recent collapse in computer chip prices, electronics giant Toshiba is to axe around 18,800 jobs.

Confirming reports that Toshiba is to cut its global workforce by ten per cent, the company also revealed it is set explore a tie-up with European rival Infineon, which has reported a slump of almost two thirds in profits at its memory chip division.

Toshiba’s move follows last week’s announcement that Fujitsu was cutting over 16,000 jobs worldwide.

Toshiba blamed the job losses on a deteriorating business climate which has affected firms in technology sectors particularly badly.

Meanwhile, an unconfirmed report by a Japanese Sunday newspaper claimed that Hitachi, Japan's largest electronics manufacturer, was also considering cutting 20,000 posts.

On Monday the company confirmed it was to cut 800 jobs by March at its electronic materials and household chemicals unit, Hitachi Chemical. (MB)

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